On the other hand, Yes Bank was the biggest gainer, rallying 30.73 percent, after the company said that the RBI had not found any divergence in the asset classification and provisioning done by the lender during 2017-18.

Market extended losses as investors continued to focus on domestic cues while assessing global developments, said Vinod Nair, Head of Research, Geojit Financial Services.

Moderation in Wholesale Price Index (WPI) in January provides an insight about the slowdown in the economy and earnings growth, he added.

Inflation based on wholesale prices fell to a 10-month low of 2.76 percent in January over the previous month on softening prices of fuel and some food items, according to government data released earlier in the day.

The WPI-based inflation stood at 3.8 percent in December, 2018, and 3.02 percent in January 2018.

Mixed leads from most other Asian bourses also accelerated the selling pace, but a higher opening of European shares helped trim losses to some extent.